Only typed answer .Please make sure this is 100% correct. 1. The language of price controlsSuppose that, in a competitive market without government regulations, the equilibrium price of soft tacos is $4 each.Complete the following table by indicating whether each of the statements is an example of a price ceiling or a price floor and whether it is binding ornonbinding.StatementThe government prohibits tacquerias from selling soft tacos for more than $2 each.Due to new regulations, tacquerias that would like to pay better wages in order to hiremore workers are prohibited from doing so.The government has instituted a legal minimum price of $7 each for soft tacos.Price ControlPrice ceiling ▼Price ceilingPrice floorBinding or NotBindingBindingNon-binding ▼

The price ceiling is the government-imposed maximum price for a product. A price ceiling is binding…

Suppose that, in a competitive market without government regulations, the equilibrium price of soft tacos is $4 each. Complete the following table by indicating whether each of the statements is an example of a price ceiling or a price floor and whether it is binding o nonbinding.

Suppose that, in a competitive market without government regulations, the equilibrium price of soft tacos is $4 each. Complete the following table by indicating whether each of the statements is an example of a price ceiling or a price floor and whether it is binding o nonbinding.

Principles of Economics (MindTap Course List)

8th Edition

ISBN:9781305585126

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter7: Consumers, Producers, And The Efficiency Of Markets

Section: Chapter Questions

Problem 6PA

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Only typed answer .

Please make sure this is 100% correct.

1. The language of price controls
Suppose that, in a competitive market without government regulations, the equilibrium price of soft tacos is $4 each.
Complete the following table by indicating whether each of the statements is an example of a price ceiling or a price floor and whether it is binding or
nonbinding.
Statement
The government prohibits tacquerias from selling soft tacos for more than $2 each.
Due to new regulations, tacquerias that would like to pay better wages in order to hire
more workers are prohibited from doing so.
The government has instituted a legal minimum price of $7 each for soft tacos.
Price Control
Price ceiling ▼
Price ceiling
Price floor
Binding or Not
Binding
Binding
Non-binding ▼

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